Renovated Courtyard Office
For Sale
Contact for pricing
401 Watt Ave, Sacramento, CA 95864
Professional office property with private offices, conference rooms, and extensive on-site parking.
Property Size27,585 SF
Price / SF$210.26
Days on Market1303
Property Features for 401 Watt Ave
General Information
Standard status
Active
Size
27,585 SF
Property subtype
OFFICE
Listing Agency:
Colliers | Sacramento
(916) 929-5999
Listed By:
Thomas Walcott, SIOR, CCIM
(916) 212-8414
Source:
Moodyscre
Added: Feb 7, 2023
Changed: Aug 29
Last Checked: Sep 1 at 9:57PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Colliers | Sacramento
Investment Insights
Based on property information with market context.
This 27,585-square-foot office building occupies a 1.98-acre site and features a courtyard-oriented layout with multiple private offices, conference rooms, fireplaces, and an expansive lunchroom. Outdoor amenities include a landscaped courtyard and fountain, while signage opportunities and 96 parking places support daily business operations.
The building underwent a comprehensive renovation in 2004 that included interior refinishing, a new roof, updated bathrooms, electrical and plumbing work, HVAC improvements, telecommunications equipment, and landscaping. Located at 401 Watt Ave in Sacramento, the property combines substantial office improvements with a campus-style setting.
The building underwent a comprehensive renovation in 2004 that included interior refinishing, a new roof, updated bathrooms, electrical and plumbing work, HVAC improvements, telecommunications equipment, and landscaping. Located at 401 Watt Ave in Sacramento, the property combines substantial office improvements with a campus-style setting.
Key Highlights
- 27,585‑square‑foot office building on a 1.98‑acre site
- 96 parking places with a 3.71/1,000 parking ratio
- Courtyard setting with fountain and landscaping
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$375,824
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
6.48%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,516,480
$7.5M
Cap Rate 7%
$5,368,914
$5.4M
Cap Rate 9%
$4,175,822
$4.2M
Market Conditions
NOI Build-Up for 27,585 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$595.8K $21.60/SF
− Vacancy
−$94.7K −$3.43/SF
EGI
$501.1K $18.17/SF
− OpEx
−$125.3K −$4.54/SF
NOI
$375.8K $13.62/SF
Area
Sacramento, CA
Vacancy
15.90%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,516,480
Cap Rate 7%
$5,368,914
Cap Rate 9%
$4,175,822
Alternative Uses
Best Use
Office B
$5.37M
$4.70M – $6.26M
NOI $375,824 @ 7.0% cap · market cap 6.48%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$7.41M
$6.49M – $8.65M
NOI $518,874 @ 7.0% cap · market cap 8.95%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
724
Businesses Nearby
Explore this area
Business Placement
Demographics for 95864, CA
24,249
Population
10,286
Households
2.4
Avg Household Size
44
Median Age
58%
College-Educated
95%
High-School Grad
6.3 sq mi
ZIP Area
3,849
Density / Sq Mi
$129,083
Median Household Income
$63,220
Median Earnings
$1,863
Median Rent
$770,200
Median Home Value
Market
Vacancy Rate% for Office in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Professional office property with private offices, conference rooms, and extensive on-site parking.
Where is this office building located?
The property is located at 401 Watt Ave Sacramento, CA.
What is the asking price?
The asking price for this property is $5,800,000.
What are key features of this property?
This property features: 27,585‑square‑foot office building on a 1.98‑acre site; 96 parking places with a 3.71/1,000 parking ratio; Courtyard setting with fountain and landscaping
